Trumbull Man Admits Submitting False Tax Returns

Kevin J. O’Connor, United States Attorney for the District of Connecticut, announced that Mario Rotanelli, age 47, of 236 Sterling Road, Trumbull, Connecticut, pleaded guilty before United States District Judge Stefan R. Underhill in Bridgeport to one count of making and subscribing a false tax return.

According to documents filed with the Court and statements made in court, from 1998 to 2001, Rotanelli was employed as the Vice President/President of Mr. R’s Prepared Foods, Inc. (“Mr. R’s”) and the subsequently created business entity known as LB MFG., Inc. (“LB”). Both companies manufactured baked goods and employed many of the same employees. As an officer of Mr. R’s and LB, ROTANELLI and others had a responsibility to collect employment taxes from the wages of employees of Mr. R’s and LB, including himself, and pay the collected employment taxes to the Internal Revenue Service. However, Mr. R’s and LB did not pay to the IRS all of the employment taxes withheld from his and other employees’ wages.

The charge to which Rotanelli pleaded guilty relates to Rotanelli’s individual income tax return for tax year 2000. Rotanelli knew that this tax return was not true and correct in that he reported that $17,051 of federal income tax had been withheld and paid to the IRS, resulting in a tax refund of $6,822. Rotanelli knew that $17,051 of federal income tax had not been withheld and paid to the IRS and that he was not entitled to a tax refund for tax year 2000.

Judge Underhill has scheduled sentencing for February 26, 2007, at which time Rotanelli faces a maximum term of imprisonment of three years and a fine of up to $250,000.

This case was investigated by the Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant United States Attorney David X. Sullivan.